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Exercise 6-16A Identifying avoidable cost of a segment LO 6-4 Stuart Corporation is considering the elimination of one of its segments. The segment incurs the
Exercise 6-16A Identifying avoidable cost of a segment LO 6-4 Stuart Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold. Advertising expense Supervisory salaries Allocation of companywide facility-level costs Original cost of building Book value of building Market value of building Maintenance costs on equipment Real estate taxes on building $ 89,000 166,000 64,000 126,000 61,000 89,000 86,000 7,000 Required Determine the amount of avoidable cost associated with the segment. Avoidable cost
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